Macquarie Asset Management earnings soar to $2.6bn

Macquarie Asset Management's (MAM) earnings soared to $2.6 billion largely driven by bumper performance fees charged on its private markets transactions.

MAM's net profit jumped 27% in its full-year reporting period ending March thanks to private markets-managed funds, managed accounts and co-investments.

It also profited from higher advisory fee income, particularly in the Americas, Australian and New Zealand, as well as higher brokerage fee income from increased market activity.

The asset management unit, which covers real assets, real estate, private credit and secondaries, reported total assets under management (AUM) of $722.1 billion, up 8% year on year. Locally, MAM manages $325.9 billion in assets.

The increase in AUM was the result of increased investments, net asset valuation changes and net flows. It was partially offset by unfavourable foreign exchange movements and divestments.

Of the total $416.1 billion in private markets AUM, some $347 billion comes from infrastructure energy.

About $306 billion is in public investments, namely in in fixed income and equities. During the period, MAM raised $20.9 billion in new equity from clients across the asset classes. It allocated $25.2 billion of equity across 32 investments, including 16 in private credit, 11 in real assets and five in real estate, with transactions including Diamond Infrastructure Solutions, Bristol and Birmingham Airports and Vocus.

MAM generated 87% of its income outside Australia. Nine of the 10 largest superannuation funds in Australia have mandates with MAM.

It is also a major investor in energy supply infrastructure across the world. During the year, MAM's portfolio company Island Green Power secured a 20-year contract for difference from the UK government for its West Burton project and announced long-term financing for Nexamp, an owner of commercial and industrial solar projects in the US, which will support the construction of utility-scale solar and battery storage projects.

Macquarie Group reported total FY26 net profit of $4.8 billion, jumping 30% annually. This marks the third consecutive year of earnings growth and the second highest in Macquarie's history.

Macquarie Group managing director and chief executive Shemara Wikramanayake said the results come from revenue growth across four operating groups and disciplined cost management.

"Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities," she said.